What is the Right Time to Buy Term Insurance?
Picking the right term insurance for your family is one of the few things that can guarantee the financial safety of your loved ones in case you are not around to take care of them. Life insurance policy is also considered an excellent investment instrument by many that can offer financial support at all times. However, the big question which everyone has is: When is the right time to buy a term insurance plan?
Most people believe that term insurance plans are not for everyone and are thus unaware of the potential advantages that can be leveraged early in life through term insurance.
Buying an appropriate term insurance plan at different stages of your life will give you a better idea of your insurance requirements.
Early 20s and Unmarried
If you are in your early 20s and unmarried, the fact that you do not have an additional family to support helps you to save on your income, which you can then invest in term insurance.
With fewer expenses to take care of, you can use this to your advantage by purchasing term insurance to create a financial cushion for your later years. Also, the premium charges for you would be low and affordable and would help you to save on taxes.
Mid 20s and Married
This is a crucial time for you if you are just married and have started a new chapter in your life. It is also a good time for newly-weds to create an excellent financial backup for a family to thrive.
It would help if you opted for term insurance that offers higher coverage. Also, we suggest you buy a term policy with maturity benefit. A beneficial term plan with return of premium acts as robust financial support in the later years.
Early 30s, Married & have Children.
This is a stage in your life where your responsibilities grow, and so do the expenses. The education of children, extra-curricular activities, medical expenses and other nitty-gritty of life take the spotlight. Your long term debts must be paid, and the protection of your family is your priority.
In this scenario, a higher protection term policy is what you can choose while buying term life insurance. You must also check for riders such as critical illness rider, accidental death rider, premium waiver rider, etc.
Creating a financial backup for the later years should start at an early age. If you are about to reach the twilight years of your life, now is a good time to choose a pension plan that can grow into a strong corpus after retirement.
It is essential to consider the occurrence of a premature demise and how your investments would support your family after you are gone.
Whether you are 20 years old or 60 years young, a term life insurance plan helps you to sail through the different uncertainties of life smoothly. It is a good idea to buy your term insurance plan as early as possible because the premium you pay is much cheaper when you are young as compared to later stages in life.
You can buy term insurance online to save a lot of time and effort; however, always remember to compare all your options and choose the one which suits your financial requirements perfectly.